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HomeMy WebLinkAbout03.a. Approve minutes of March 7, 2013 Board meetingMINUTES OF THE REGULAR MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MARCH 7, 2013 The Board of Directors of the Central Contra Costa Sanitary District convened in a regular meeting in the Board Room, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, March 7, 2013. President Nejedly called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: McGill, Pilecki, Williams, Nejedly ABSENT: Members: Causey a. PLEDGE OF ALLEGIANCE TO THE FLAG None. The Board and staff joined in the Pledge of Allegiance. 2. PUBLIC COMMENTS 3. CONSENT CALENDAR a. Approve minutes of Board meetings held on the following dates: January 24, 2013; and February 7, 2013. b. Approve expenditures dated March 7, 2013. Reviewed by Budget and Finance Committee. C. Receive January Financial Statements and Investment Reports. Reviewed by Budget and Finance Committee. d. Approve renewal of the contract for legal services with Kenton L. Alm, Esq. and Meyers, Nave, Riback, Silver & Wilson for the two -year period February 1, 2013 through January 31, 2015. Approval recommended by Budget and Finance Committee and the Ad Hoc Committee for Legal Services. Member Pilecki noted that he submitted minor, non - substantive changes to the January 24, 2013 minutes included in the agenda packet as part of Item 3.a. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of March 71 2013 It was moved by Member McGill and seconded by Member Williams to adopt the Consent Calendar as recommended, with the changes requested by Member Pilecki to the January 24, 2013 minutes. Motion passed by unanimous vote of the Board. 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. 5. REPORTS a. GENERAL MANAGER 1) Report on outcome of Fieldman Rolapp study re possible use of Pension Obliaation Bonds to fund CCCERA UAAL Provisional General Manager Curt Swanson reported that, in April 2012, the District began looking into the possibility of issuing Pension Obligation Bonds (POBs) to fund the District's Unfunded Actuarial Accrued Liability (UAAL). Mr. Tom DeMars and Mr. Dan Wiles of Fieldman, Rolapp and Associates, who performed the study, stated that their model was constructed to allow for consideration of annual cash prepayment of all or part of the District's unfunded liability, refinancing of all or part of the unfunded liability, or a combination of prepayment and refinancing. Their base case scenario consisted of $75 million of prepayments, and the alternatives were a combination of POBs and prepayments. They stated that, while they were not making a recommendation, the District can maintain a finite amount of debt, and the Board should decide whether to use that capacity for pensions, capital improvements, or to leave it unused for the time being. Member Williams stated his belief that public agencies should be inherently risk averse, since their money belongs to their ratepayers. He stated that, given all the uncertainty involved, he would support the base case, as it is the most conservative option. Member Pilecki noted that the District may require construction of a $100 million nutrient removal project, as well as at least $100 million for the expansion of solids facilities. He stated that he would prefer to keep bonding capability available for projects such as those and any other future unanticipated costs. Member McGill stated that, even in the base case, the District's unfunded liability will increase if Contra Costa County Employees' Retirement Association ( CCCERA) fails to make its return. Either way, there is risk, so the question is where the risk will lie. He noted that he did not see support from the Board for going forward with POBs, but suggested the Board think in CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of March 7, 2013 terms of its Capital Projects, that if construction costs begin to increase, the District may want to bond to be able to bid projects sooner than later. 2) Report on recent third -party lawsuits under the Clean Water Act involving Delta Diablo Sanitation District and the City of San Jose Provisional General Manager Curt Swanson reported that citizen lawsuits have been integrated into many significant environmental laws, including the Clean Water Act (CWA). In the past, the actions taken under those provisions addressed significant discharge violations when a regulatory agency did not take enforcement actions. In recent years, however, citizen groups have been initiating actions against public agencies with wastewater collection systems for sanitary sewer overflows (SSOs). One group, Northern California River Watch (NCRW), has taken actions against agencies close to the District, including the City of Benicia, the City of Antioch, the City of San Jose, and Delta Diablo Sanitation District. NCRW has given 14 notices of intent to file actions since 2008, including 9 in 2012 and 1 so far in 2013. Environmental Compliance Superintendent Tim Potter reported that there is an interpretation of the CWA in which SSOs that reach state waters can be considered a strict liability. As the basis for these lawsuits, this interpretation exposes even high - performing agencies to litigation. NCRW takes a standard approach for SSO- related actions, using data tracked by the California Integrated Water Quality System (CIWQS) to issue a Notice of Violation and Intent to Sue letter, then settling the case with corrective actions and payment of attorney fees. District Counsel Kent Alm noted that the District could put out a guidance for agencies to take certain actions, which would provide protection to some of those who receive an order. As long as the agency adheres to that guidance, the agency would be protected. Member McGill asked if there would be any merit in stipulating an agency - specific minimum mandatory penalty and approaching the agency directly, or going through Bay Area Clean Water Agencies (BACWA) or California Association of Sanitation Agencies (CASA). He also asked what the District might do about its and other agencies' exposure to this type of litigation. President Nejedly stated that the public's money is being spent twice — once on the regulatory body penalties and again on these lawsuits — when it should be spent on doing what is right. He suggested that staff continue bringing the matter back to the Board and do what it can do to mitigate the third -party lawsuits. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of March 7, 2013 3) Announcements The following announcements were included with the agenda packet: a) Recent promotion of Steve Sauter to Field Operations Superintendent in the Collection System Operations Division, effective February 25, 2013 b) Public bidding for the Headquarters Office Building (HOB) Improvements — Network Upgrades, District Project 8234 C) Public bidding for the Primary Treatment Plant Renovations, District Project 7285 d) Staff attendance at California Water Environment Association (CWEA) Annual Conference in Palm Springs from April 16 -19, 2013 e) Update on Caffe Classico source control issues The following additional announcements were made at the meeting: f) Recent Personnel Advancements: Chris Hesse to Plant Operator III, effective December 18, 2012; Justin Stoops to Maintenance Crew Member II in the Collection System Operations Division, effective February 23, 2013; and Michael Muhlestein to Pumping Stations Operator II in the Collection System Operations Division, effective March 2, 2013. g) Staff travel to Taneytown, Maryland on March 25 -27, 2013 for the factory testing of pumping equipment for the San Ramon Pumping Station Upgrades Project, District Project 6003 President Nejedly commented that, if there is value in the small pump being replaced, there may be a buyer for it. Provisional General Manager Curt Swanson stated that he would check on the disposition of the pump. b. COUNSEL FOR THE DISTRICT 1) Written Legal Update District Counsel Kent Alm reported that the District has been served with a notice that CCCERA is being sued regarding its implementation of retirement restrictions. He stated CCCERA's concern that, if the lawsuit (Contra Costa County Deputy Sheriffs Association, et al. v. CCCERA, et al.) results unfavorably for its member agencies, those agencies may not agree to furnish the extra funds, potentially leading to a second round of lawsuits. As such, CCCERA will seek a hearing on March 16, 2013 for any member agencies to CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of March 7, 2013 plead their case to be left out of the suit. A closed session will be scheduled for the next regular Board meeting on March 21 for the Board to determine its position. C. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme reported that Form 700 Statements of Economic Interests have been distributed to Member McGill, Member Williams, and President Nejedly and are due to be filed at the end of March 2013. Members Causey and Pilecki have filed their assuming office statements. d. BOARD MEMBERS 1) Board Member reports on recent meetings for which they received the stipend; and meetings or conferences for which the District paid their expenses; future meetings or conferences for which they will receive the stipend or for which the District will pay their expenses Member McGill Member McGill reported on the February 22, 2013 luncheon event with Assembly Member Joan Buchanan and State Controller John Chiang on the topic "California's Fiscal Picture: The Good, Bad and the Ugly." Member McGill and President Nejedly reported on the March 4, 2013 Budget and Finance Committee meeting and summarized the Action Summary. The Board received the report without comment. Member Williams Member Williams reported on the February 25 -27, 2013 California Association of Sanitation Agencies (CASA) Legislative Conference in Washington, D.C. Member Williams and Member Pilecki reported on the March 6, 2013 Human Resources Committee meeting and summarized the Action Summary. The Board received the report without comment. 2) Announcements Member McGill provided a written report covering Announcements. 6. EMERGENCY SITUATIONS REQUIRING BOARD ACTION None. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of March 71 2013 7. SUGGESTIONS FOR FUTURE AGENDA ITEMS President Nejedly requested that the Board receive an update at the next meeting and regular updates thereafter on the pending source control issues with Caffe Classico Foods in Concord. Member Williams requested that the Board revisit the idea of revising the District's Travel Policy to replace the reimbursement system with a per diem. Member McGill suggested that the matter be referred to the Budget and Finance Committee. In response to a question from Member McGill, Provisional General Manager Curt Swanson stated that the upcoming Board retreat will likely be split into two workshops in April or early May 2013. Staff will be interviewing potential facilitators. 8. CLOSED SESSION The Board recessed at 3:14 p.m. to reconvene in closed session in the Caucus Room. District Counsel Kent Alm attended in place of Labor Negotiation and Benefits Counsel Edward Kreisberg. a. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6: District Negotiators: • Labor Negotiation and Benefits Counsel Edward L. Kreisberg, Esq. • Provisional General Manager Curt Swanson • Human Resources Manager Teji O'Malley • Secretary of the District Elaine Boehme Employee Organizations: • Employees' Association, Public Employees Union, Local One • Management Support/Confidential Group (MS /CG) Management Group The Board recessed at 3:32 p.m. to reconvene in the Board Room in open session. 9. REPORT OUT OF CLOSED SESSION District Counsel Kent Alm reported that no reportable action was taken in Closed Session. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of March 7, 2013 10. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 3:32 p.m. James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California